Legislative Report
July 2009
The primary focus of both the House and Senate during the month of May was on the 2010 fiscal year appropriations. While only those on the appropriations committees were directly involved in the process, the other legislators were involved by lobbyists attempt to influence their vote when the appropriations committees’ recommendations come before the entire bodies. The proposed reductions impact most areas of state government which created intensive lobbying efforts by those representing various constituencies throughout the state.
Both the Senate and House were trying to get the 2010 appropriation bills for which they are responsible completed prior to their taking a two week summer break. With the exception of the State Police budget which began in the Senate and moved to the House, all bills have passed each chamber, but are not consistent with each other. The differences in versions will be resolved in what are known as conference committees. The major differences reflect the philosophical approach to funding taken by the respective political parties. The Republican controlled Senate cut some $1.2 billion, while the Democratic controlled House only cut $525 million. So the major task of the conference committees will be to agree on a final dollar figure for each appropriation bill and how to arrive at that dollar figure. One of the major decisions coming out of the House and Senate are their agreement that the Departments of Environmental Quality and Natural Resources should be combined beginning October 1. This will not be subject to change by the conference committee.
The State Police appropriation bill has not been finalized in the House because of two major concerns. The Senate version of the bill omitted the funding for the lease payment of the new State Police headquarters, some $3.7 million. The House will have to decide whether to restore the lease money so that the new headquarters may be occupied when it is completed late in the year. The Michigan Chamber of Commerce and the Building Trades Council are lobbying to get the lease money restored. The Senate did not restore the funding for the 100 troopers who were laid off effective July 1 as the result of the Governor’s executive order. The State Police Troopers Association members voted to not take furlough days in order to prevent the layoff of the 100 troopers slated for layoff. Their rationale was that the patrol hours would be lost whether it was through voluntary furlough days or permanent layoff of the 100 troopers, most of whom recently completed training.
To add fuel to the fire, Attorney General Mike Cox was quoted as saying that, a “perfect storm” was being created with the layoff of the troopers, accelerated release of prisoners and the closing of eight prisons and/or camps. His statement should not be lost on the fact that he is running for Governor.
Some of the bills which saw action during the month of May which may be of interest to our members follows:
Change in filing complaint for crimes against a vulnerable adult — HB 5011 would allow a knowledgeable individual other that the victim to sign a criminal complaint alleging a crime has been committed against a vulnerable adult. The bill addresses the potential reluctance of a vulnerable adult to sign a complaint against a relative or a caregiver on whom they must depend. Such vulnerable adult may be trusting and not willing to believe that his or her caregiver or relative is exploiting them. A vulnerable adult is defined as (1)a person 18 years or older who lacks the skills to live independently due to age, developmental, mental, or physical disability; (2) An individual unable to protect himself or herself from abuse, neglect, or exploitation because of mental or physical impairment or advanced age; (3) a child placed in a foster care home or an adult foster care small group home with the approval of the Department of Social Services. The bill has been reported out of the Senior Health, Security and Retirement Committee.
Control measures regarding refund anticipation loans — HB 4166 and 4607 are bills designed to prevent exploitation of individuals who have their income taxes prepared by companies offering refund anticipation loans. HB 4166 would create a Refund Anticipation Loan Disclosure Act which would require a facilitator to give the taxpayer certain information before he or she completes an application. The information would include loan fees and percentage rates for a representative sampling of loans and full disclosure that the refund anticipation loan was an extension of credit and not the taxpayer’s actual tax refund. The facilitator also would have to disclose to the taxpayer the estimated fees and annual percentage rate of the loan before it is signed by the taxpayer. HB 4607 would create the Refund Anticipation Loan Act which would prohibit the facilitator from requiring the taxpayer to obtain a refund anticipation loan in order to have a tax return prepared or engage in any fraudulent activity in connection with an anticipation loan. Further, the taxpayer would have the right to rescind the loan by returning the check or by repaying the loan amount by the close of business the day after the loan was made. The bill also provides sanctions for violations of the conditions outlined above. Both bills have passed the House and the Senate and now go to the Governor for signature.
Prohibiting reuse of single-use medical equipment — HB 4940 is a bill which would prohibit a health care provider from knowingly reusing, refurbishing for reuse, or providing for reuse a single-use medical device intended for one procedure. The bill calls for violation of its provision imprisonment for not more than 10 years and/or a fine of not more than $10,000, in addition to licensing sanctions. The bill would apply to most health care professionals. The bill would exempt a health care provider who utilized, recycled, or reprocessed for utilization, or provided for utilization a single-use device that had been reprocessed by a federally registered and regulated processor. Senate Bill 528 is a bill which basically mirrors HB 4940. HB 4940 has passed the House and gone to the Senate Committee on Health Policy. SB 528 has been reported out of the Committee on Health Policy and is on the Senate floor for consideration.
Disclosure requirements for automated political telephone calls — HB 4985 is a bill which would require the identification of the person or organization paying for so called “robo calls.” The provisions of the bill would be applicable to any political communication done by any electronic means. The name of the person paying for the communication and any disclaimers would have to be placed at the beginning of the communication. This is the same requirement that currently applies to radio political advertisements. Currently the “robo calls” do not fall within the jurisdiction of the Campaign Finance Act and are sometimes viewed as being intrusive and disturbing by the receiver. The bill also prohibits calls between the hours of 8 p.m. and 9 a.m. The bill has passed the House and gone to the Senate Committee on Campaign and Election oversight.
Transfer of responsibility of retiree health care plan design and implementation — HB 4072 remains in the Retirement Sub-committee of Senate Appropriations. Please refer to previous Legislative Reports regarding details of this bill which SERA opposes. We again request that you write your state senator and ask that he/she not support this bill should it ever come up for a vote.
Miscellany
State pension funds share in settlement dollars — As the result of the settlement of a lawsuit for $109 million by a group of states, Michigan’s state pension funds will receive a portion of that settlement money. The lawsuit was against Ernst and Young, a public accounting firm, for the role it played in the cover-up of fraudulent activity of HealthSouth Corporation. HealthSouth had already settled with states for some $445 million for its improper bookkeeping practices. The Michigan Retirement System lost some $33 million due to its investment in HealthSouth.
Local state union sues International Union — UAW Local 6000 is challenging the UAW International Union for usurping the Local’s bargaining authority. The Local 6000 contract with the State of Michigan calls for any furlough days, if imposed, to be taken consecutively. By so doing, the employees would be eligible for unemployment compensation. The state imposed six furlough days spread over several months for most of its employees. Local 6000 insisted that its furlough days follow the provisions of the contract. The State then approached the International Union and the International Union agreed to have the Local 6000 furlough days spread out like other employees. Now the Local is asking the International to pay union employees some $500,000 for lost unemployment benefits as a result of the International’s involvement.
Senators involved in verbal confrontation — Democratic State Senator Irma Clark-Coleman of Detroit has filed a complaint with Majority Leader Michael Bishop and also filed a police report regarding an encounter with Republican Senator Roger Kahn of Saginaw. The verbal exchange occurred on an elevator after a Senate hearing on community mental health. Senator Clark alleges that Senator Kahn entered her personal space while engaged in a verbal discussion. According to Senator Clark, it was only through the physical intervention of Senator John Pappageorge that Senator Kahn was prevented from attacking her. The matter is being investigated by the Majority Leader’s Office.
Cobo Convention Center agreement — The Cobo Center, located in downtown Detroit, is best known as the site for the annual International Auto Show. This City of Detroit owned facility is in need of repair and expansion. To address that need, the legislature had earlier passed a bill establishing a regional authority composed of representatives from Wayne, Oakland and Macomb Counties to operate the facility and oversee the necessary expansion. The Detroit City Council did not like the terms of the public act to accomplish this and refused to turn the facility over to the regional authority. Because of the value of the Auto Show to the region, the legislature made another attempt to pass a bill addressing the City Council’s concerns. This bill passed and would allow Detroit to lease the facility to a five person regional authority for thirty years in exchange for a $20 million payment for loss of parking revenue. The new public act also gives hiring preferences to individuals from the three county region for renovation work at Cobo. The massive expansion will be funded by of the hotel, motel and liquor taxes in the tri-county area. The bill also gives the Mayor of Detroit the power to veto the Detroit City Council’s action on the lease agreement should they reject it. Should the ratification of the proposed agreement fall apart, the backup site for a regional convention center would be Oakland County’s Rock Financial Showplace.
People in the News
Michael Bouchard, current Republican sheriff of Oakland County and a former legislator, has announced his candidacy for Governor in 2010.
Terri Lynn Land, currently Secretary of State who is term limited had previously indicated she would be a candididate for Governor. She has withdrawn her candidacy and will support Mike Bouchard for Governor.
Alma Wheeler Smith, a veteran Democratic legislator from South Lyon who has served as a state representative and currently is a state Senator, has announced her candidacy for Governor in 2010.
Scott Bowen, a former Grand Rapids area judge, former Director of the Office of State Employer and current Lottery Director has been nominated by Michigan’s two senators to be the U.S. Attorney for Western Michigan. The President will make the appointment.
Carl Purcell, a former Republican state senator from Plymouth and former U.S. congressman for 16 years, recently died at the age of 76.
Richard Allen, a former Republican state representative from Caro and former newspaper editor, recently died at the age of 71.
Editor’s note: Alvin Whitfield is former President of the Lansing SERA Chapter and former Chairperson of the Michigan SERA Council and current Legislative Representative for both the Council and the Lansing Chapter. He may be contacted at 1241 Runaway Bay Drive, C-3, Lansing, Michigan 48917; phone 517/703-9666; e-mail: alwhit@worldnet.att.net.
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